HSBC: Time to Get Out of Equities, High Yield as Peak Is Near

The video discusses current trends in equity markets, focusing on the implications of the trade war and its phased removal. It highlights the rapid pricing of risk assets and insights from the Chicago Fed President on monetary policy. The discussion extends to market predictions for 2020, emphasizing cyclical assets and the impact of base effects in the dollar and oil prices. The video concludes with strategies for asset allocation, noting the correlation between risk on and risk off assets.

What are the two key takeaways from the discussion on the trade war?

• It will be resolved quickly and without issues.

• It will lead to immediate economic growth.

• It involves many uncertainties and will be removed in phases.

• It has no impact on equity markets.

What is the main focus of Charles Evans' conversation regarding monetary policy?

• Increasing interest rates to control inflation.

• Ignoring inflation concerns altogether.

• Lowering rates to reflate the economy.

• Maintaining high interest rates for economic stability.

What is the expected impact of changing base effects in the dollar and oil prices?

• A decrease in market volatility.

• A decline in cyclical asset performance.

• A potential year-end rally for cyclical assets.

• No impact on asset performance.

What is the relationship between risk-on and risk-off assets according to the discussion?

• They are inversely related.

• They have no impact on global equities.

• They are highly correlated with each other.

• They are completely independent of each other.

What strategic shift is recommended for multi-asset allocation?

• Overweight in global equities and high yield.

• Underweight in global equities and high yield.

• Maintain current weight in all assets.

• Focus solely on idiosyncratic risks.